Zee Corporation plans to sell 800,000 bottles of product during the first quarter of 2014 at a price of $20 per bottle. The monthly sales breakdown is as follows: Time left 0:47:51 Month Bottles January 200,000 February 250,000 March 350,000 April May 500,000 375,000 Tee purchases each bottle at a cost of $5. At the beginning of January, Zee plans to have 0,000 bottles on hand and plans to maintain an ending inventory of 20% of the next month ales.
Zee Corporation plans to sell 800,000 bottles of product during the first quarter of 2014 at a price of $20 per bottle. The monthly sales breakdown is as follows: Time left 0:47:51 Month Bottles January 200,000 February 250,000 March 350,000 April May 500,000 375,000 Tee purchases each bottle at a cost of $5. At the beginning of January, Zee plans to have 0,000 bottles on hand and plans to maintain an ending inventory of 20% of the next month ales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Zee Corporation plans to sell 800,000 bottles of product during the first quarter of 2014 at a
price of $20 per bottle. The monthly sales breakdown is as follows:
Time left 0:47:51
Month
Bottles
January
200,000
February
250,000
March
350,000
April
500,000
May
375,000
Zee purchases each bottle at a cost of $5. At the beginning of January, Zee plans to have
40,000 bottles on hand and plans to maintain an ending inventory of 20% of the next month
sales.
The cost of bottles to be purchased in March would be:
Select one:
O a. $1,900,000
O b. $1,750,000
OC. $400,000
O d. $380,00
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